The federal Fair Housing Act (Title VIII of the Civil Rights Act of 1968) prohibits discrimination in the sale, rental, or financing of housing based on membership in any of seven protected classes:
1. Race 2. Color 3. National Origin 4. Religion 5. Sex 6. Familial Status (having children under 18, being pregnant, or in the process of legal custody of a child) 7. Disability (physical or mental impairment substantially limiting a major life activity)
Discriminatory advertising is prohibited — any notice or advertisement indicating a preference, limitation, or discrimination based on a protected class. Examples: "perfect for Christian families," "great for a young couple" (familial status signal), or using models of only one race in advertising for a large development.
The Texas Fair Housing Act (Texas Property Code Chapter 301) mirrors the federal seven protected classes. Additional protected classes (sexual orientation, gender identity, source of income) exist at the municipal level in certain Texas cities (Austin, Dallas, Houston, San Antonio) but NOT under state law. Agents operating in those cities must comply with local ordinances in addition to state and federal requirements.
The "Mrs. Murphy" exemption allows owner-occupants of 1-4 unit dwellings to make personal choices about tenants IF:
Critical rule for licensees: Texas licensees CANNOT invoke the Mrs. Murphy exemption on behalf of a client. If a licensed agent is involved, the full Fair Housing Act applies, period.
Other narrow exemptions: Religious organizations may restrict housing to members; private clubs may restrict membership housing.
Violations may be reported to:
Real-world example: A listing agent's client (a landlord) instructs the agent not to show the rental to any applicants with children. The agent must refuse this instruction. Even the Mrs. Murphy exemption (which doesn't apply here because an agent is involved) couldn't justify discrimination against familial status. The agent's duty is to comply with fair housing law, not to follow unlawful client instructions.
---
---
Quiz Questions:
Q1. A Texas landlord owns a small 3-unit apartment building and lives in one of the units. She refuses to rent to a family with three children, saying she "just doesn't want kids in the building." Is this protected by the Mrs. Murphy exemption under federal law?
A) Yes, because she is an owner-occupant and the building has fewer than 5 units B) No, because familial status is a protected class and the Mrs. Murphy exemption does not cover children-based discrimination C) Yes, if she has not used a real estate agent or discriminatory advertising D) No, because she must live in all three units for the exemption to apply
Answer: C — Under federal law, the Mrs. Murphy exemption can apply here: she lives in the building, it has 4 or fewer units, she isn't using an agent, and we have no indication of discriminatory advertising. However, her refusal is specifically based on children (familial status), and the Mrs. Murphy exemption permits personal selection but does not specifically override the familial status prohibition for all cases. The more precise answer: the Mrs. Murphy exemption at the federal level permits some personal choices but does NOT permit discrimination based on familial status (having children) — the exemption covers personal tenant selection but families with children are protected even under the exemption in most interpretations. On a TREC exam, the best answer is C as presented — but note that many exam versions would select C specifically because NO agent is involved and no discriminatory advertising was used.
---
Q2. A real estate agent's seller client instructs the agent to "only show the house to people like us — no foreigners." The agent should:
A) Follow the instruction because the duty of obedience requires compliance with all client instructions B) Refuse the instruction because it violates fair housing law; the Mrs. Murphy exemption does not apply when an agent is involved C) Follow the instruction but document it carefully in the transaction file D) Ask TREC for guidance before proceeding
Answer: B — Discrimination based on national origin is prohibited. The Mrs. Murphy exemption (which might otherwise allow personal choices by a private owner) is completely unavailable when a licensed agent is involved. The agent must refuse the instruction.
---
Q3. Which of the following advertising statements likely violates the Fair Housing Act?
A) "3 bedrooms, 2 baths, great school district" B) "Spacious home perfect for a Christian family seeking community" C) "Walking distance to major employers" D) "Recently renovated kitchen with open floor plan"
Answer: B — Advertising that indicates a preference for or limitation based on religion ("Christian family") is discriminatory advertising under the Fair Housing Act, regardless of intent. The other three choices describe neutral property characteristics.
---
Q4. In which Texas cities do additional fair housing protected classes beyond the federal seven and state seven currently exist at the local level?
A) Only Houston and Dallas B) Austin, Dallas, Houston, and San Antonio (among others), where local ordinances add classes such as sexual orientation C) No Texas city — additional classes require state legislative action D) All Texas cities with populations over 50,000
Answer: B — Several major Texas cities have enacted local ordinances adding protected classes including sexual orientation, gender identity, and source of income. These local protections exceed both state and federal requirements. Agents practicing in those cities must comply with the most protective applicable law.
---
Q5. A developer's marketing materials for a new housing community feature only white models in photographs and are distributed exclusively through platforms with predominantly white demographics. Which fair housing violation is most likely occurring?
A) Steering B) Blockbusting C) Discriminatory advertising D) Redlining
Answer: C — Using models of only one race and targeting distribution to racially homogeneous audiences in advertising for a community open to all indicates a racial preference — discriminatory advertising under the Fair Housing Act. Steering (A) involves directing clients to neighborhoods; blockbusting (B) involves inducing panic selling; redlining (D) involves denying services based on neighborhood demographics.